Reduced wages help drive Arsenal to lower losses despite absence of European football

By David Owen

December 4 – Table-topping Arsenal have posted a much-needed improvement in annual financial performance, helped by the return of live spectators to Emirates Stadium and a 13% cut in the bill for wages.

The North London club, currently five points clear of Manchester City in the paused race for Premier League glory, cut wage costs from £244.4 million for the year ended 31 May 2021 to £212.3 million in 2021-22. A feature of Mikel Arteta’s much-improved team has been the simultaneous blossoming of a number of young players such as Bukayo Saka and Gabriel Martinelli who may not be earning as much as some of those they replaced.

Matchday revenue – an income stream where Arsenal normally has an edge on domestic rivals – soared from just £3.8 million to £79.4 million. This resulted in increased football revenue of £369.1 million, up from £327.6 million in 2020-21, even though the club had missed out on European competition for the first time in 25 years.

Overall, the Gunners’ pre-tax loss was reduced to £45.5 million in the latest period, from the towering figure of £127.2 million reported for 2020-21.

After exceptional costs of £32.2 million in 2020-21, net finance charges fell sharply to £5.2 million last year. Cash at end-May 2022 was £30 million, up from £18.8 million.

The exceptional item related to the redemption of the group’s stadium finance bonds and their refinancing via a loan from the Kroenke-controlled KSE UK Inc., the ultimate parent. A feature of the 2020-21 results had been a sharp year-on-year climb – from £15 million to £201.6 million – in the balance due to the club’s parent undertaking. This will be one figure to look out for once the new accounts are filed at Companies House, as the club says it will do “in due course”. The current details were released on the club’s website.

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